US stocks finished sharply lower on Monday and were on track for their worst quarter in four years as investors worried about the health of China's economy and its potential impact on the timing of a US interest rate increase. The Nasdaq composite lost 3 percent and S&P 500 dropped more than 2 percent. Much of the damage came from pharmaceutical and biotech stocks after Democratic lawmakers on Monday attacked "massive" price increases of two heart drugs from Canada's Valeant Pharmaceuticals International Inc, which tumbled 16.5 percent. The Nasdaq biotechnology index. NBI fell 6 percent, its worst one-day drop since 2011, adding to losses from last week when Democratic presidential candidate Hillary Clinton criticized drug pricing. Among the S&P sectors, the health care index .SPXHC was the deepest decliner, down 3.84 percent.

Tuesday, 29 September 2015

Indian ADRs ended mixed on Monday. In the IT space, Infosys gained 0.03 percent at USD 17.84 and Wipro was down 0.14 percent at USD 11.66. In the banking space, ICICI Bank fell 0.28 percent at USD 8.19 and HDFC Bank dipped 2.39 percent at USD 58.17. In the other sectors, Tata Motors was down 1.15 percent at USD 21.73 and Dr Reddy's Laboratories was up 1.59 percent at USD 61.38.

Asian equity markets were mixed on Monday as investors digested key data from the world's second-biggest economy. But volumes in the region were light with Hong Kong, Taiwan and South Korea shut for the Mid-Autumn Festival. Chinese industrial profits declined 8.8 percent on year in August, worse than July's 2.9 percent fall, the National Statistics Bureau announced at the market open. For the first eight months of the year, profits slid 1.9 percent as forty-two straight months of tanking producer prices erodes earnings growth.

The US economy expanded more than previously estimated in the second quarter on stronger consumer spending and construction, backing the case for an interest rate rise before the end of the year despite data sounding a note of caution for September. The Commerce Department said on Friday gross domestic product rose at a 3.9 percent annual pace in the April-June quarter, up from the 3.7 percent pace reported last month. The data supports the case that the US economy may be gaining enough strength to withstand an increase in benchmark interest rates from record low levels despite growing concerns about the global economy.

Indian ADRs ended mixed on Wednesday. In the banking space, ICICI Bank fell 0.01 percent at USD 8.39 and HDFC Bank gained 0.10 percent at USD 58.53. In the IT space, Infosys was down 0.10 percent at USD 17.65 and Wipro was down 0.02 percent at USD 11.81. In the other sectors, Tata Motors slipped 0.39 percent at USD 23.21 and Dr Reddy's Laboratories added 0.66 percent at USD 60.02.

Asian shares got off to a cautious start on Thursday after more dour economic news in China and the United States prompted a bruising selloff the previous day. Worries that an eventual tightening in US monetary policy and slower growth in China could knock the global economy have scared off investors, particularly those invested in stocks and commodities. MSCI's broadest index of Asia-Pacific shares outside Japan was up a touch in early trade after having posted their biggest single-day fall in almost a month the previous day. Japan's Nikkei average, opening for the first time since Friday after national holidays, tumbled 1.6 percent, edging near its seven-month low touched earlier this year.

US stocks ended down slightly on Wednesday, led by losses in materials and energy shares as weak Chinese and US factory data added to growth worries. Trading was choppy once gain, with the S&P 500 briefly trading higher following afternoon comments by Chinese President Xi Jinping that his country was capable of maintaining a relatively high growth rate for a long time. The S&P 500 is down 2.8 percent since Thursday, when the Federal Reserve decided to hold interest rates near zero.

Indian ADRs ended lower on Tuesday. In the banking space, ICICI Bank fell 0.26 percent at USD 8.40 and HDFC Bank shed 1.06 percent at USD 58.43. In the IT space, Infosys was down 0.11 percent at USD 17.75 and Wipro was down 0.34 percent at USD 11.83. In the other sectors, Tata Motors slipped 1.46 percent at USD 23.60 and Dr Reddy's Laboratories declined 1.18 percent at USD 59.36.

The Indian rupee extended losses for the second consecutive session on Wednesday. The currency breached 66-mark against dollar in early trade, down 14 paise to 66.02 per dollar compared to 65.88 a dollar in previous session.

US stocks dropped on Tuesday as a selloff in commodities dragged down materials companies while Volkswagen suppliers' shares dropped following the German carmaker's emissions scandal. S&P materials, down 1.8 percent, led the decline for the S&P 500, but the selloff was broad-based, with all 10 major sectors lower. Shares of Newmont Mining were down 6.3 percent at USD 15.59.

Tuesday, 22 September 2015

Interest rates are surely going to rise; it isn't a matter of "if" anymore but merely a matter of "when." Investors may believe that they want to exit the stock market in anticipation of rising interest rates, preferring to commit funds to the "safer" bond market. In more normal market conditions, that would be a prudent strategy. Today, however, I believe that there is more risk in the bond markets than in the stock market. The bond market is largely about mathematics. There is an inverse relationship between bond prices and interest rates. When rates rise, bond prices fall. With rates at historical lows, there is only one direction for interest rates to trend and that is upward.

Indian ADRs ended higher on Monday. In the IT space, Infosys gained 0.44 percent at USD 17.86 and Wipro was up 0.18 percent at USD 12.17. In the banking space, ICICI Bank was up 0.02 percent at USD 8.66 and HDFC Bank rose 0.88 percent at USD 59.49. In the other sectors, Tata Motors was up 0.06 percent at USD 25.06 and Dr Reddy's Laboratories shed 0.37 percent at USD 60.54.

Asian shares edged higher on Tuesday, stabilizing from sharp declines in the previous session, as Wall Street ended higher overnight. The Dow Jones Industrial Average and S&P 500 closed up 0.8 and 0.5 percent respectively, recovering part of their Friday sell-off. The Nasdaq Composite eked out marginal gains, weighed by a plunge in biotechnology plays on the back of renewed controversy over large price increases on some drugs.

US stocks ended higher on Monday, rebounding from losses late last week with help from Apple and financial shares, but a drop in biotech shares limited the advance. Shares of biotech companies fell after US Democratic presidential candidate Hillary Clinton said she would announce a plan to stop "price gouging" for specialty drugs. Biogen fell 5.6 percent to USD 297.16 and Gilead was down 2.5 percent at USD 105.74. The S&P healthcare sector fell 1.4 percent and was the only S&P 500 sector index to end lower. The Nasdaq biotech index slumped 4.4 percent.

Indian ADRs ended lower on Friday. In the IT space, Infosys was down 0.33 percent at USD 17.42 and Wipro fell 0.12 percent at USD 11.99. In the banking space, ICICI Bank slipped 0.17 percent at USD 8.64 and HDFC Bank shed 0.53 percent at USD 58.61. In the other sectors, Tata Motors was down 0.79 percent at USD 25 and Dr Reddy's Laboratories was down 0.71 percent at USD 60.91.

Asian stocks declined early Monday, tracking an uninspiring lead from Wall Street, as the Federal Reserve's decision to keep interest rates near zero stoked concerns about global growth. Major US averages finished sharply lower last Friday, with the Dow Jones Industrial Average closing down 1.7 percent. The S&P 500 and tech-heavy Nasdaq Composite lost 1.6 and 1.4 percent respectively. Attention may also turn to Greece, where Prime Minister-elect Alexis Tsipras claimed victory in the country's general elections on Sunday and will return to power in a coalition government with the right-wing Independent Greeks.

US stocks closed sharply lower Friday as investors weighed concerns over the implications of the Federal Reserve's decision to keep short-term interest rates unchanged. "The signaling by the Fed yesterday, (that it) doesn't see confidence to pull the trigger to raise from zero to 25 basis points, I think is negative sentiment that's hitting the market," said Art Hogan, chief market strategist at Wunderlich Securities. "I think they've done more harm than good," he said. Analysts also noted Friday trading would likely see more volatility due to quadruple witching, the expiration of three related classes of options and futures contracts, as well as individual stock futures options.

Indian ADRs ended mixed on Thursday. In the IT space, Infosys was down 0.12 percent at USD 17.75 and Wipro was up 0.03 percent at USD 12.11. In the banking space, ICICI Bank gained 0.12 percent at USD 8.81 and HDFC Bank added 0.77 percent at USD 59.14. In the other sectors, Tata Motors was down 0.05 percent at USD 25.79 and Dr Reddy's Laboratories was down 0.09 percent at USD 61.62.

Asian shares outside Japan mostly rebound early Friday, recovering from early losses after the Federal Reserve cited concerns about global economic growth in its decision to hold off on its first rate hike in nearly a decade. "In the grand scheme of things, the decision by the Fed to leave rates unchanged is indicative that the global economy and the U.S. economy is performing worse than previously projected," IG's market analyst Angus Nicholson wrote in a note. Wall Street indexes gave up a 1-percent rally to end mostly lower overnight. The blue-chip Dow Jones Industrial Average and the S&P 500 slipped 0.4 and 0.3 percent respectively, while the Nasdaq Composite inched up 0.1 percent.

Major Wall Street indexes gave up a 1-percent rally to end lower on Thursday after the Federal Reserve cited concerns about global economic growth in its decision to hold off on raising interest rates. The US central bank held rates steady in a bow to worries about the global economy, financial market volatility and sluggish inflation at home, but it left open the possibility of a modest policy tightening later this year. The S&P financial index led the decline after being among the top performers throughout the prior five sessions.

Wednesday, 16 September 2015

Shares of Sun Pharmaceutical Industries rose 2.3 percent intraday Wednesday as its subsidiary has entered into an agreement for acquisition of InSite Vision. InSite Vision focuses on developing new specialty ophthalmic products, including three late stage programs. Sun Pharma is in the process of establishing a branded ophthalmic business in the US and these deals will give access to four late stage branded ophthalmic products in the US. For the 6-month period ended June 30, 2015, InSite Vision recorded revenues of USD 3.8 million, an EBITDA loss of USD 6.4 million and a net loss of USD 7.5 million. The share has been in limelight post the company's subsidiary Taro launching Keveyis which is used to treat periodic paralysis.

US stocks rallied over 1 percent on Tuesday after data showed healthy growth in consumer spending but did little to remove uncertainty about whether the Federal Reserve will raise rates this week. Speculation about when the Fed will end seven years of near-zero interest rates has dogged Wall Street for several months, with the picture complicated by recent market turbulence that some see as justification for the central bank to hold off. "The debate around the Fed continues, but the Fed will do more damage waiting for December to raise rather than start the normalization process," said Art Hogan, chief market strategist at Wunderlich Securities. "If they don't raise rates this week, it's a bad signal."